The end of 2016 was challenging for the Hamptons luxury real-estate market, according to several brokerages that released reports. Data from the luxury real-estate company Brown Harris Stevens showed that average home prices had fallen by 23.1% in the fourth quarter year-over-year.

In the second quarter, 48 homes that cost $5 million or more sold a vast improvement compared with the past year and a half, according to Bloomberg.

Experts blamed the election for the previous downturn.

"This was really due to the election," Aspasia Comnas, executive managing director of Brown Harris Stevens of the Hamptons, told Business Insider's Madeline Stone. "We're a secondary-home market, and if our buyers or sellers feel at all uncertain about what their economic future will look like — and with a change in administration, there was no way but for there to be a change in the economy — buyers and sellers hold back."

The Hamptons market has also been hurt by the growing popularity of the Hudson Valley, which has renowned hiking and food scenes.